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Transaction examples

The following examples cover most of the use cases.

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Information – Assumptions about all the following examples

  • The initial transaction amount is €150 and is initiated by the cardholder
  • At the transaction time, the cardholder's wallet has a balance of €1000
  • At the transaction time, the cardholder has no pending transactions. Therefore, their Balance and Authorized Balance are identical.

Accepted transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization.
  • The payment is received by the merchant.
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2SettlementS150850850

Declined transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank declines the payment.
#OperationStatusAmountBalanceAuthorized Balance
10001000
1DeclineI15010001000

Canceled transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization.
  • The transaction is canceled by the merchant, before the settlement
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2ReversalV15010001000

Gas station transaction

  • The cardholder requests a €150 authorization at a gas station before refilling their vehicle.
  • The cardholder's bank accepts the authorization (#1).
  • The cardholder actually fills for €90 of fuel.
  • The difference between the authorization amount and the actual amount (€60) is reversed (#2)
  • The actual amount (€90) is settled (#3)
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2ReversalV601000910
3SettlementS90910910

Specific case of automated fuel dispensers in the US and Canada

Please note that Treezor applies a fixed pre-authorized amount of €160 for all pre-authorization requests made in the USA or Canada for automated fuel dispensers (AFD) payments.

This applies to transactions with the following values:

  • "mccCode":"5542"
  • "paymentCountry":"USA" (or "CAN")
  • "paymentLocalAmount":"1"

In such cases, additional information can be found in the authorizationNote:

  • Specific to AFD: fixed amount authorization — Indicates that the fixed amount has been applied.
  • Fixed amount adjustment — Indicates that the actual amount has been charged and the leftover, if any, is reversed.

Below is a sample of a cardtransaction.create webhook corresponding to our example. As previously described, the paymentLocalAmount is $1, and the paymentAmount is €160.

json
 {
	"merchantName": "SHELL",
	"merchantCity": "EVANSTON",
	"merchantCountry": "USA",
	"paymentLocalTime": "135911",
	"publicToken": "999999999",
	"paymentAmount": "160.00",
	"paymentCurrency": "840",
	"fees": "0.00",
	"paymentCountry": "USA",
	"paymentId": "1xxx63",
	"paymentStatus": "A",
	"paymentLocalAmount": "1.00"
}

Multi-settlement transaction

  • The cardholder purchases multiple products on an internet shop
  • The cardholder's bank accepts the authorization (#1).
  • The merchant does a settlement per product (#2, #3)
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2SettlementS75925850
3SettlementS75850850

Multi-reversal transaction

  • The cardholder purchases multiple products on an internet shop
  • The cardholder's bank accepts the authorization (#1).
  • The merchant makes a cancellation per product (#2, #3)
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2ReversalV751000925
3ReversalV7510001000

Non-Euro transaction

  • The cardholder pays for service or products in a currency other than Euro, in a physical or internet shop.
  • The cardholder's bank accepts the authorization at the current exchange rate (#1).
  • The merchant cashes in the transaction at the settlement-time exchange rate
Info icon

Information – Assumptions

  • Exchange rate of £100 = €150 at authorization time
  • Exchange rate of £100 = €160 at settlement time
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2SettlementS160840840

Refunded transaction

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization (#1).
  • The merchant settles the payment (#2)
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2SettlementS150850850

If the merchant decides to refund the transaction after settlement.

Accepted refund

#OperationStatusAmountBalanceAuthorized Balance
850850
3RefundR-150850850
4SettlementS-15010001000

Refused refund

#OperationStatusAmountBalanceAuthorized Balance
850850
3DeclinedI-150850850

Accepted transaction, without settlement nor reversal

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization (#1).
  • No settlements nor reversals occur.

The authorization remains active, and funds are blocked on the Authorized Balance.

#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850

If no further action is taken, the authorization is considered as expired after 10 days (on the night of the 10th to 11th day).

The Authorized Balance is then freed of this transaction.

#OperationStatusAmountBalanceAuthorized Balance
1---10001000

When the authorization expires:

  • No cardtransactions.create webhooks are sent at all (Because no additional operations are generated).
  • A balance.update webhook is sent.

Accepted transaction, refused afterwards

  • The cardholder makes a purchase (online or in a physical shop)
  • The cardholder's bank accepts the authorization (#1).
  • The transaction is then refused within one to two hours (#2).
#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA1501000850
2DeclineI15010001000

When an incident occurs on the scheme network, a previously approved authorization can fail to reach the acquirer. In such cases, the network catches the error and immediately triggers a transaction refusal.

Treezor is informed within 2 hours, and the transaction initially authorized (A) will be declined (I).

Direct settlement transaction

  • The merchant bypasses the authorization and proceeds to a "Direct Settlement"
#OperationStatusAmountBalanceAuthorized Balance
10001000
1SettlementS150850850

Convoluted example

Consider the following scenario:

  • A user has a balance of €1,000.
  • The user orders 3 products at the same time on a marketplace (#1).
  • One €100 product, a second €100 product and one €300 product.
  • Later that day, the user tries to order a €700 product, but their authorized balance is insufficient (#2).
  • The next day, the seller of the €300 product informs him that this product is not available anymore and cannot fulfill the order (#3).
  • The user tries again to order that €700 product (#4).
  • The sellers of the €100 products and €700 product inform them that they shipped their respective products (#5, #6, #7).
  • One week later, the user returns one of the €100 products for a refund (#8, #9).

Associated wallet operations

#OperationStatusAmountBalanceAuthorized Balance
10001000
1AutorizationA5001000500
2DeclinedI7001000500
3ReversalV3001000800
4AutorizationA7001000100
5SettlementS100900100
6SettlementS100800100
7SettlementS700100100
8RefundR-100100100
9SettlementS-100200200

Explanations

  • #2: Even though the user has a Balance of €1,000 at the time, their Authorized Balance is of €500, insufficient to authorize a €700 payment.
  • #3: The unavailable €300 product is reversed, freeing up the Authorized Balance from €500 to €800.
  • #4: The €700 purchase is now acceptable.
  • #5,6,7: Each merchant of the marketplace receives an independent settlement
  • #9: Refund appears as negative-value settlements